New deals bring total debt agreed by the group over the last eight months to around 拢1.2bn

Residential property owner Grainger has signed two debt financings, which bring the total amount of debt agreed by the group over the last eight months to around 拢1.2bn. The deals will see the average life of Grainger鈥檚 committed facilities extended to 5.9 years.     

The first new financing is an 拢840m Forward Start Facility, signed with five relationship banks. 拢166.5m of this will mature in December 2014, 拢606m in July 2016, 拢7.5m in July 2018 and 拢60m in July 2020.

The second agreement provides a new funding structure for some of the group鈥檚 retirement solutions assets, non-recourse to the rest of the group, signed with Partnership Assurance. The initial drawing will be 拢50m, but more are expected to follow.

The facility is repayable on a property-by-property basis as the assets become vacant and are sold, with interest rolling up on each property.

Grainger will use the 拢50m from Partnership to reduce its drawings to around 拢877m. The group鈥檚 existing core facilities are 拢1,093m, of which 拢927m are presently drawn.    

Mark Greenwood, Grainger鈥檚 finance director, said: 鈥淭hese transactions give Grainger far greater certainty over its medium and long-term financing and are in line with our stated financing strategy.

鈥淲e are especially pleased that, as well as the continuing support of Barclays, Lloyds, Nationwide and Royal Bank of Scotland, we are able to welcome HSBC to the syndicate. This follows HSBC and Santander working with us to fund our acquisition of the Grainger GenInvest LLPs earlier this year.

鈥淭hese two new facilities, along with those announced earlier in the year and our proven cash generating capabilities, demonstrate our continued ability to finance the Group and enable it to execute its strategy.鈥�

Commenting on Grainger鈥檚 new relationship with Partnership, Ged Hosty, managing director of Equity Release at Partnership said: 鈥淲e are delighted with this funding arrangement where we have been able to utilise our expertise in the retirement sector to provide an innovative solution which is a good fit for our balance sheet.  We look forward to working with Grainger on similar transactions in the future.鈥�

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